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FINANCIAL CRISIS

Slow start for stocks and falling krona

The Stockholm stock exchange took a minor tumble on Thursday morning in the wake of fresh falls on Asian and US markets, while the Swedish krona fell sharply against the euro and the dollar.

Published: 16 October 2008 10:00 CEST
Slow start for stocks and falling krona

After 45 minutes of trading, the OMXS index had dropped 2 percent.

Sweden’s major banks dragged the market down following reports that fewer analysts were recommending their clients to buy the banks’ stocks.

According to SEB chief economist Robert Bergqvist, falling rates on global markets do not amount to a failing grade for the recent raft of crisis packages.

“What the exchanges are reacting to right now is the economy and the fact that we are on our way into a period of low growth where we don’t know how long and deep it’s going to be,” he told the TT news agency.

The economist also expected the weakening of the krona against the euro to be a major topic of discussion.

The cost of the euro reached its highest ever point on Thursday morning, coming in at 10.12 kronor.

“In 2001 it was up near the ten kronor mark. But there doesn’t appear to be a great amount of trading,” said Bergqvist.

The dollar also strengthened against the krona on Thursday morning, hitting its highest level since 2006 at 7.58 kronor. And the Danish krone is stronger against the Swedish krona than at any time since 1995.

CENTRAL BANK

Norway central bank mulls stepping in to prop up falling krona

The central bank of Norway said Thursday it was considering intervening to stop the fall of the Norwegian krone, which is taking a beating from the economic fallout of the new coronavirus.

Published: 19 March 2020 14:15 CET
Norway central bank mulls stepping in to prop up falling krona
The headquarters of Norway's central bank in Oslo. Photo: Mahlum/Wikimedia Commons
Faced with the risk of recession and a sharp drop in the price of oil, of which Norway is Western Europe's largest producer, the Norwegian krone is buckling under.
   
Since the beginning of the year, when the currency was already weakened, the dollar has appreciated against the krone by more than 20 percent and the euro by almost 18 percent.
   
The drop intensified on Wednesday and according to business news site e24.no the currency had never weakened more in a day since the country abandoned its fixed exchange rate regime in 1992.
   
“In recent days, there has been an extraordinary situation in the market for Norwegian kroner,” Norges Bank, the country's central bank, said in a statement.
   
“Against this background Norges Bank is continuously considering whether there is a need to intervene in the market by purchasing Norwegian kroner,” it said.
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